Slide 1: Investora 2019
INVESTOR PRESENTATION | SEPTEMBER 2019 INVESTORA 2019 LEONTEQ AG | PRESENTATION
Slide 2: Legal Disclaimer
INVESTOR PRESENTATION SEPTEMBER 2019 LEGAL DISCLAIMER This presentation of Leonteq AG (the “Company”) serves for information purposes only and does not constitute research. This presentation and all materials, docu- ments and information used therein or distributed in the context of this presentatio
Slide 3: Agenda
AGENDA INVESTOR PRESENTATION SEPTEMBER 2019 • OUR BUSINESS • OUR STRATEGY • OUR PERFORMANCE • SUMMARY 3
Slide 4: Our Business
INVESTOR PRESENTATION SEPTEMBER 2019 OUR BUSINESS 4
Slide 5: Experts in Structured Products and Savings Solutions
INVESTOR PRESENTATION SEPTEMBER 2019 OUR BUSINESS EXPERTS IN STRUCTURED PRODUCTS AND SAVINGS SOLUTIONS * PEOPLE TWO DISTINCT BUSINESS LINES ~ 500 EMPLOYEES FROM >50 NATIONS 11%* • Founded in 2007 INSURANCE & WEALTH • IPO in 2012 PLANNING SOLUTIONS • Market cap of around CHF 0.6 billion 11 OFFICES 89
Slide 6: Investment Solutions: Connecting Buyers and Sellers of Structured Products
INVESTOR PRESENTATION SEPTEMBER 2019 BUSINESS LINE 1 | INVESTMENT SOLUTIONS CONNECTING BUYERS AND SELLERS OF STRUCTURED PRODUCTS Award winning • One of the largest universe services for clients of structured products • More than 2,000 underlyings Issuance Partners Large structured and 90 payoffs Aar
Slide 7: Product Range: Large Universe of Payoffs and Asset Classes
INVESTOR PRESENTATION SEPTEMBER 2019 PRODUCT RANGE LARGE UNIVERSE OF PAYOFFS AND ASSET CLASSES PRODUCT CATEGORIES ASSET CLASSES Return Leverage Fixed Commodi- Participa- income ties tion Yield Enhance- ment Equities Capital Protec- tion FX Hybrid Risk • Yield enhancement is currently the most demand
Slide 8: Insurance & Wealth Planning Solutions: Digital Platform to Life Insurers
INVESTOR PRESENTATION SEPTEMBER 2019 BUSINESS LINE 2 | INSURANCE & WEALTH PLANNING SOLUTIONS DIGITAL PLATFORM TO LIFE INSURERS INSURANCE PLATFORM • Enable life insurers to offer attractive and transparent long-term savings and drawdown solutions with both, upside potential Our and downside protectio
Slide 9: Insurance Products: Products in the Swiss Market
INVESTOR PRESENTATION SEPTEMBER 2019 INSURANCE PRODUCTS 4 PRODUCTS IN THE SWISS MARKET GUARANTEE PLAN DRAWDOWN PLAN • Savings plan for recurring premiums • One-time financed drawdown plan with upside potential and guarantee with guaranteed payments at maturity • Guarantee provider Raiffeisen Bank •
Slide 10: Our Strategy
INVESTOR PRESENTATION SEPTEMBER 2019 OUR STRATEGY 10
Slide 11: Transformation of Business Model
INVESTOR PRESENTATION SEPTEMBER 2019 TRANSFORMATION OF BUSINESS MODEL LEADING MARKET PLACE FOR STRUCTURED INVESTMENT SOLUTIONS PHASE 1 • Differentiate Leonteq through enhanced client services Client focus • Propositions centred around transparency on product documentation, service throughout the lif
Slide 12: Strategic Priorities: Focused Execution Since Mid-2018
INVESTOR PRESENTATION SEPTEMBER 2019 STRATEGIC PRIORITIES FOCUSED EXECUTION SINCE MID-2018 PRIORITIES DEFINED UPDATES & ACHIEVEMENTS • Simplified organisational structure Increase efficiency, reduce functional 1 Reduce complexity overlaps and clarify roles and responsibilities • Product organisation
Slide 13: Smart Hedging Issuance Platform (SHIP)
INVESTOR PRESENTATION SEPTEMBER 2019 SMART HEDGING ISSUANCE PLATFORM (SHIP) ON TRACK TO BE FULLY OPERATIONAL BY MID-2020 LEONTEQ PLATFORM • 3rd hedging counterparty ISSUERS connected to SHIP • Autocallables and barrier reverse convertibles with equity underlyings available • All major currencies ava
Slide 14: SHIP Statistics Q2 2019
INVESTOR PRESENTATION SEPTEMBER 2019 SHIP STATISTICS Q2 2019 MORE THAN 600 TRADES WITH NOTIONAL OF CHF 350M¹ TRADES AND NOTIONAL EXECUTED ON SHIP (CUMULATIVE)2 FOCUS AREAS TO KEEP POSITIVE MOMENTUM • Today, SHIP covers approx. 800 350 40% of Leonteq’s product universe (autocallables and barrier reve
Slide 15: New Digital Marketplace
INVESTOR PRESENTATION SEPTEMBER 2019 NEW DIGITAL MARKETPLACE REDEFINING THE INVESTMENT EXPERIENCE OF CLIENTS AND PARTNERS Leonteq CRM Private banks CRM EFG International • Digital access to one of the largest Raiffeisen Switzerland IV. I. CRM Invest Access Retail banks structured product universes C
Slide 16: Our Performance
INVESTOR PRESENTATION SEPTEMBER 2019 OUR PERFORMANCE 16
Slide 17: Business Metrics
INVESTOR PRESENTATION SEPTEMBER 2019 BUSINESS METRICS CONSISTENT STRONG DOUBLE DIGIT GROWTH RATES PLATFORM ASSETS* (CHFbn) TURNOVER (CHFbn) 15 40 CAGR CAGR 33% 23% 30 10 20 13.8 11.9 5 11.4 26.8 28.8 7.9 9.2 10 7.6 18.7 18.6 20.9 5.3 14.5 15.0 3.1 3.3 10.4 11.7 2.8 6.9 7.8 0 0.7 1.3 0 3.5 2008 2009
Slide 18: Income Statement
INVESTOR PRESENTATION SEPTEMBER 2019 INCOME STATEMENT FOCUS ON SUSTAINABLE, PROFITABLE GROWTH TOTAL OPERATING INCOME (CHFm) TOTAL OPERATING EXPENSES (CHFm) 300 300 CAGR CAGR • Stable fee income generated in 29% 16% different set of market environment 200 200 • Cost line under control 282 • Since rea
Slide 19: Solid Balance Sheet
INVESTOR PRESENTATION SEPTEMBER 2019 SOLID BALANCE SHEET LOW RISK PROFILE AND LEVERAGE RATIO OF 7.7% ASSETS (CHFbn) LIABILITIES AND SHAREHOLDERS’ EQUITY (CHFbn) • Total assets decreased by 10% to CHF 9.6 billion Short-term credit Cash & receivables 1.7 1.7 & liabilities • Decrease in both assets and
Slide 20: Strong Capital Position
INVESTOR PRESENTATION SEPTEMBER 2019 STRONG CAPITAL POSITION TOTAL BIS ELIGIBLE CAPITAL OF CHF 633.5 MILLION RISK-WEIGHTED ASSETS (IN CHFm) BIS TOTAL CAPITAL RATIO (IN %) 5,000 25 -0.7pp +7% 4,000 20 2,981 2,781 2,381 4% 3,000 15 2,138 2% 1,919 2% 15% 15% 2% 17% 15% 22.0 21.3 2,000 3% 21% 10 19% 20.
Slide 21: Summary
INVESTOR PRESENTATION SEPTEMBER 2019 SUMMARY 21
Slide 22: Summary: Focus on Transforming Leonteq's Business Model
INVESTOR PRESENTATION SEPTEMBER 2019 SUMMARY FOCUS ON TRANSFORMING LEONTEQ’S BUSINESS MODEL • Leonteq made important steps towards becoming a globally renowned platform for structured investment products • Solid performance in H1 2019 despite challenging start into the year • Focused execution of ke
Slide 23: Appendix
INVESTOR PRESENTATION SEPTEMBER 2019 APPENDIX 23
Slide 24: Income Statement
INVESTOR PRESENTATION SEPTEMBER 2019 INCOME STATEMENT CHFm FY 2015 FY 2016 FY 2017 FY 2018 H1 2018 H1 2019 CHANGE Y-O-Y Net fee income 228.7 209.0 247.0 272.5 145.7 120.9 (17%) Net trading result (4.1) 5.5 (25.8) 21.4 (3.7) 7.5 N/A Net interest result (4.9) (7.5) (8.8) (14.9) (7.5) (5.2) (31%) Other
Slide 25: Key Performance Indicators
INVESTOR PRESENTATION SEPTEMBER 2019 KEY PERFORMANCE INDICATORS GROUP KPIS FY 2015 FY 2016 FY 2017 FY 2018 H1 2018 H1 2019 Cost-income ratio 69% 91% 89% 67% 70% 76% Return on equity 17% 4% 6% 18% 19% 10% Investment Solutions Platform assets (CHFbn)1 7.9 9.2 11.4 11.9 13.2 13.8 Whereof platform partn
Slide 26: Shareholder Structure
INVESTOR PRESENTATION SEPTEMBER 2019 SHAREHOLDER STRUCTURE1 SIGNIFICANT SHAREHOLDERS2 SHAREHOLDER STRUCTURE1 Raiffeisen Switzerland3 29.02% Lukas Ruflin family interests 4 8.15% Sandro Dorigo 2.45% Subtotal shareholders’ agreement 39.62% Rainer-Marc Frey 5,6 12.15% 20% 29% Credit Suisse AM7 3.00% Di